Credit cards have become an essential part of our daily lives. They offer unmatched convenience, easy EMIs, cashback, discounts, and attractive reward points. But with all these benefits comes a big responsibility—misusing your credit card can land you in serious financial trouble. To stay safe and smart, here are five things you should never do with your credit card, even by mistake.
1. Don’t Withdraw Cash Frequently
While your credit card allows you to withdraw cash from ATMs, it comes with hefty charges and high interest. Unlike purchases, there’s no interest-free grace period on cash withdrawals. The meter starts ticking the moment you take out money, making it one of the costliest mistakes. Use this facility only in absolute emergencies.
2. Never Delay Your Bill Payments
Paying the minimum due might sound tempting, but it’s a trap. If you don’t clear your full bill on time, interest starts piling up at 30–40% annually. Late payments also affect your credit score negatively, which can hurt your chances of getting future loans. Always try to pay your bill in full before the due date.
3. Avoid Overspending Just to Earn Rewards
Reward points and cashback offers are attractive, but they should not push you to spend beyond your means. Many people swipe their cards unnecessarily just to earn points, only to struggle later with repayments. Remember: spend within your budget, not for perks.
4. Don’t Share Your Card Details.jpg)
Your credit card information is highly sensitive. Sharing your CVV, OTP, or card number with anyone—even friends—can put you at risk of fraud. Cybercriminals often use phishing calls, fake emails, or social engineering tricks to steal card details. Always keep your information private and enable transaction alerts for safety.
5. Never Max Out Your Credit Limit
Using your full credit limit not only signals financial stress but also impacts your credit utilization ratio, which lowers your credit score. Ideally, keep your spending within 30–40% of your available limit. This shows lenders you’re financially disciplined and improves your eligibility for bigger loans or higher credit limits.
📌 Final Word
A credit card is a powerful financial tool, but it can easily become a burden if misused. By avoiding these five common mistakes—frequent cash withdrawals, late payments, overspending, sharing details, and maxing out your limit—you can enjoy the benefits of your card while keeping your financial health intact.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
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